NYSE:ABC

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Executive Summary

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. More Details


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has AmerisourceBergen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

ABC

1.2%

US Healthcare

-0.4%

US Market


1 Year Return

14.5%

ABC

23.2%

US Healthcare

18.3%

US Market

Return vs Industry: ABC underperformed the US Healthcare industry which returned 23.2% over the past year.

Return vs Market: ABC underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

ABCIndustryMarket
7 Day-0.1%1.2%-0.4%
30 Day5.0%14.0%8.0%
90 Day-4.2%6.8%9.4%
1 Year16.6%14.5%24.8%23.2%21.0%18.3%
3 Year37.4%30.1%36.7%30.9%42.1%32.7%
5 Year12.4%3.0%67.4%55.2%85.6%64.7%

Price Volatility Vs. Market

How volatile is AmerisourceBergen's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AmerisourceBergen undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABC ($99.38) is trading below our estimate of fair value ($386.34)

Significantly Below Fair Value: ABC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABC is good value based on its PE Ratio (13.1x) compared to the US Healthcare industry average (25.2x).

PE vs Market: ABC is good value based on its PE Ratio (13.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABC is poor value based on its PEG Ratio (8.7x)


Price to Book Ratio

PB vs Industry: ABC is overvalued based on its PB Ratio (5.3x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is AmerisourceBergen forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABC's forecast earnings growth (1.5% per year) is below the savings rate (2.2%).

Earnings vs Market: ABC's earnings (1.5% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: ABC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABC's revenue (4.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ABC's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABC's Return on Equity is forecast to be high in 3 years time (35.1%)


Next Steps

Past Performance

How has AmerisourceBergen performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABC has a large one-off loss of $705.4M impacting its June 30 2020 financial results.

Growing Profit Margin: ABC's current net profit margins (0.8%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: ABC has become profitable over the past 5 years, growing earnings by 14.3% per year.

Accelerating Growth: ABC's earnings growth over the past year (64.4%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: ABC earnings growth over the past year (64.4%) exceeded the Healthcare industry 28%.


Return on Equity

High ROE: Whilst ABC's Return on Equity (39.75%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is AmerisourceBergen's financial position?


Financial Position Analysis

Short Term Liabilities: ABC's short term assets ($29.9B) do not cover its short term liabilities ($30.6B).

Long Term Liabilities: ABC's short term assets ($29.9B) exceed its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: ABC's debt to equity ratio (104.3%) is considered high.

Reducing Debt: ABC's debt to equity ratio has reduced from 241.2% to 104.3% over the past 5 years.

Debt Coverage: ABC's debt is well covered by operating cash flow (38.2%).

Interest Coverage: ABC's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet


Next Steps

Dividend

What is AmerisourceBergen current dividend yield, its reliability and sustainability?

1.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABC's dividend (1.69%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: ABC's dividend (1.69%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: ABC's dividends per share have been stable in the past 10 years.

Growing Dividend: ABC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.6%), ABC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABC's dividends in 3 years are forecast to be well covered by earnings (18.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Steve Collis (59 yo)

9.25yrs

Tenure

US$11,309,930

Compensation

Mr. Steven H. Collis, also known as Steve, has been the Chief Executive Officer and President of AmerisourceBergen Corporation since July 2011 and November 2010. Previously, Mr. Collis served as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD11.31M) is about average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Collis
Chairman9.25yrsUS$11.31m0.070%
$ 14.1m
James Cleary
Executive VP & CFO1.92yrsUS$3.45m0.0053%
$ 1.1m
Gina Clark
Executive VP and Chief Communications & Administration Officer3.33yrsUS$2.37m0.0073%
$ 1.5m
John Chou
Executive VP & Chief Legal Officer3.33yrsUS$3.51m0.025%
$ 5.1m
Robert Mauch
Executive VP & Group President5.67yrsUS$3.54m0.011%
$ 2.3m
Lazarus Krikorian
Senior VP5.83yrsno data0.0055%
$ 1.1m
Bennett Murphy
Senior Vice President of Investor Relationsno datano datano data
Kathy Gaddes
Executive VP & Chief Compliance Officer2yrsno data0.0034%
$ 685.7k
Silvana Battaglia
Executive VP & Chief Human Resources Officer1.75yrsno data0.00013%
$ 26.4k
Leslie Donato
Executive VP & Chief Strategy Officer1.17yrsno data0.000010%
$ 2.0k
J. Quinn
VP & Corporate Treasurerno datano datano data
Brian Nightengale
President of Good Neighbor Pharmacy4.17yrsno datano data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: ABC's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Collis
Chairman9.25yrsUS$11.31m0.070%
$ 14.1m
Richard Gochnauer
Independent Director12.08yrsUS$295.07k0.0061%
$ 1.2m
Michael Long
Independent Director14.42yrsUS$300.07k0.0060%
$ 1.2m
Dermot Durcan
Independent Director5.08yrsUS$281.32k0.0036%
$ 734.4k
Lon Greenberg
Independent Director7.42yrsUS$298.75k0.0055%
$ 1.1m
Kathleen Hyle
Independent Director10.42yrsUS$281.32k0.0061%
$ 1.2m
Jane Henney
Lead Independent Director4.58yrsUS$332.58k0.0090%
$ 1.8m
Dennis Nally
Independent Director0.75yrno data0.00020%
$ 40.6k
Ornella Barra
Director5.75yrsno datano data
Henry McGee
Independent Director15.92yrsUS$305.95k0.0068%
$ 1.4m

6.6yrs

Average Tenure

67yo

Average Age

Experienced Board: ABC's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AmerisourceBergen Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AmerisourceBergen Corporation
  • Ticker: ABC
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$20.288b
  • Shares outstanding: 204.14m
  • Website: https://www.amerisourcebergen.com

Number of Employees


Location

  • AmerisourceBergen Corporation
  • 1300 Morris Drive
  • Chesterbrook
  • Pennsylvania
  • 19087
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABCNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1995
ABGDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1995
0HF3LSE (London Stock Exchange)YesCommon SharesGBUSDApr 1995
A1MB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

AmerisourceBergen Corporation sources and distributes pharmaceutical products in the United States and internationally. Its Pharmaceutical Distribution segment distributes brand-name and generic pharmaceut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 23:42
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.